Chewy's Autoship Program Drives Record Growth and Customer Loyalty

Core Insights - Chewy Inc.'s Autoship subscription program is a key driver of growth and customer loyalty, with Q2 fiscal 2025 Autoship sales reaching $2.58 billion, a year-over-year increase of 14.9%, representing 83% of total net sales [1][10] - The growth in Autoship is attributed to higher enrollment and improved retention, supported by a wide product assortment and a seamless digital shopping experience [2] - Chewy's active customer base grew to 20.9 million, a 4.5% increase year over year, with net sales per active customer rising 4.6% [3] Sales Performance - Chewy's net sales growth outperformed competitors like Central Garden & Pet Company and Petco Health and Wellness [6] - Central Garden & Pet reported a 4% decline in Q3 fiscal 2025 net sales to $961 million, while Petco's Q2 fiscal 2025 net sales decreased by 2.3% to $1.49 billion [7][8] Future Outlook - Chewy projects full-year 2025 net sales between $12.5 billion and $12.6 billion, indicating a year-over-year growth of approximately 7% to 8%, with Autoship playing a crucial role in this growth [5][10] - The company trades at a forward price-to-sales ratio of 1.18X, below the industry average of 2.23X, suggesting potential valuation upside [11] Earnings Estimates - The Zacks Consensus Estimate for Chewy's fiscal 2025 and 2026 earnings indicates year-over-year growth of 22.1% and 20.4%, respectively, with recent upward revisions in earnings estimates [12]